In this commercial property market, there are so many pressures and changes going on at any one time with property prices, rents, and availability. The local commercial real estate agent has to stay on top of the market trends and activities to win listings. It is the local market information and knowledge that will help when it comes to getting a new listing at the right price. Here are some tips from our recent Newsletter.
Property owners and landlords always have an inflated view of their property price or rent. It is their safeguard to stop them from selling or renting the property at a low figure. The fact of the matter is that buyers and tenants are driving the market at the moment. They have all the leverage when it comes to putting in an offer and closing on a deal. There are lots of properties available for sale or rent; so the average property owner really has little leverage other than the fact that they may own a high quality property.
To condition a property owner or landlord to the current property market conditions, you as the agent must have all of the facts; facts that are relevant and real for the type of property and location. Given all of this, you still see agents asking property owners how much they want to list the property at, and then they proceed with that number on the listing. What about the market! Doesn’t the market have something to do with the listing conditions and the buyers or tenants that are out there?
Here are a few of the bigger issues to help you gather the market facts and information as part of conditioning the client that you serve:
- Market rents are specific to the location and the property type. Those rents can be at true market or inflated by incentives and offerings by the landlord. We must understand the differences with those numbers. Always inspect the location of any comparable rents to ensure that they are really relevant to your subject property.
- The price for a property will be impacted by improvements, size of land, location, business sentiment, and a lot more factors. You must get the final negotiated price on any comparable properties before you use it in any listings of other nearby properties. When you get the final price, check out the property to see if it really is comparable and what the differences may be.
- Get to know the levels of acceptable property outgoings locally within property types and locations. Outgoings will have an impact on rent types, sale prices, and lease strategies.
- Property zonings and new developments will impact interest and enquiry locally. Get a copy of the planning regulations as they apply to the property and the precinct. Understand what the limitations are with the different property zonings.
- Check out new property developments in the area. When they come into the market they will impact supply and demand for space.
- Monitor the number of properties for sale or lease locally so you know the time on market in each case. Some properties will stay on the market for a long time.
- The rate of enquiry for properties to lease or buy will change regularly. Each year there will be predictable patterns to that level of enquiry. Get to know those patterns and work to optimise them.
When you really understand the property market locally you develop a confidence and drive that will help you convert more quality listings; in this property market that is exactly what you want.
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